Oil and Gas Outsourced Accounting: Benefits and Top Providers

Key Takeaways

Outsourcing accounting services for companies in the oil and gas industry unlocks a wide range of benefits, including cost savings and access to specialized expertise.
You can outsource multiple accounting services in the oil and gas industry, including financial reporting and analysis, regulatory reporting and compliance, and production accounting.
Defining roles and responsibilities and establishing communication channels are just a few of the best practices that can help you succeed in outsourcing accounting services.

Your quarterly reporting deadline is next week, but your accounting team is drowning in joint interest billings and lease obligation tracking. Meanwhile, your CFO is requesting detailed production accounting reports that require specialized oil and gas expertise your current staff simply doesn't have.

This cascades into bigger problems: delayed financial insights, compliance risks with SEC reporting requirements, and leadership making critical investment decisions without accurate, timely financial data. Ultimately, this puts your company's ability to compete for new drilling opportunities and investor confidence at serious risk.

This guide covers how oil and gas companies can leverage outsourced accounting to solve these challenges, from specialized production accounting to regulatory compliance, plus the top providers who understand the unique financial complexities of the energy sector.

The Benefits of Outsourcing Oil and Gas Accounting

Outsourcing oil and gas accounting offers significant advantages tailored to meet the specific needs of companies in the energy industry. Here’s how partnering with a specialized service provider can transform your financial operations.

Cost savings

One of the primary benefits of accounting outsourcing is its cost advantages. Outsourcing oil and gas accounting reduces overhead costs associated with maintaining an in-house team, such as the expenses of office space and accounting software.

Additionally, the wages of professional accountants in many outsourced regions are more affordable than those of local talent in the US. For example, you can save over 56% on annual salaries by hiring an outsourced accountant from Latin America (LatAm).

This strategic decision allows you to allocate resources more efficiently toward critical business areas, enhancing overall profitability and even allowing budget for expansion, research, or other ventures.

Access to expertise

Partnering with a specialized outsourcing provider grants you access to experienced professionals with in-depth knowledge of accounting for oil and gas companies. These accounting specialists ensure compliance with industry regulations and optimize financial processes for maximum efficiency.

Focus on core business

By delegating accounting tasks, you can redirect internal resources and focus on core business strategies and operational excellence. This shift enables leadership teams to pursue growth opportunities with enhanced focus.

Scalability and flexibility

Outsourcing providers offer flexible solutions that can adjust to fluctuating business demands and market dynamics. Whether you’re scaling operations up during peak periods or optimizing during downturns, outsourcing allows for agility and responsiveness.

Companies across various industries have found outsourcing to be an adaptable and inexpensive approach to fluctuating or seasonal market demands. Outsourced accounting providers provide the same benefit to companies in the oil and gas sector

Improved compliance and accuracy

External accounting providers have a deep understanding of finance and accounting regulations.

Outsourcing ensures meticulous attention to detail is paid to regulatory compliance and financial accuracy, which is crucial in the highly regulated oil and gas sector. This approach minimizes risks and promotes precision in financial reporting and compliance matters.

Types of Outsourced Oil and Gas Accounting Services

Navigating the complex financial landscape of the oil and gas industry requires specialized expertise and meticulous attention to detail. Outsourced oil and gas accounting providers offer the following services to meet these demands, ensuring smooth operations and regulatory compliance.

Financial reporting and analysis

Energy companies can outsource financial reporting to ensure their financial reports are tailored to the unique needs of oil and gas operations and provide insights into profitability, cost control, and financial health.

Accounts payable and receivable

Outsourced accountants can efficiently manage vendor payments and customer invoicing to maintain healthy cash flows and optimize financial transactions.

Joint interest billing

By handling joint interest billing, outsourced providers can accurately allocate and invoice joint venture expenses among partners, ensuring transparency and compliance with contractual obligations.

Lease obligations and land administration

Outsourcing the management of lease agreements, rental payments, and land-use contracts helps ensure compliance with regulatory requirements and optimize land assets for oil and gas companies.

Production accounting

Partnering with an outsourced accounting team to track and report production volumes can help ensure accurate revenue calculations and compliance with production reporting regulations.

Regulatory reporting and compliance

Preparation and submission of regulatory reports, including those related to environmental regulations, safety standards, and government audits can also be outsourced to accounting firms or other accounting providers.

Tax services

Outsourcing tax-related tasks can give you access to expertise in tax planning, preparation, and compliance specific to the oil and gas industry, optimizing tax efficiencies and minimizing risks.

Alternative: Build Your Own Latin American Accounting Team Instead of Traditional Outsourcing

Rather than outsourcing to a third-party firm, many oil and gas companies are choosing to hire their own dedicated accounting professionals directly from Latin America who become true team members, not external contractors.

This approach gives you the same cost savings as traditional outsourcing—often 50-70% less than US salaries—while building your own dedicated team.

Here's why hiring your own Latin American accounting professionals offers several advantages over traditional outsourcing models:

This approach offers several advantages over traditional outsourcing models:

Direct control and integration: Your accounting team reports directly to you, joins your stand-ups, and becomes fully integrated into your company culture and processes.
Long-term commitment: Unlike contractors who may work for multiple clients, your hired team members are dedicated to your success and growth.
Cultural alignment: You can ensure your accounting team understands and embodies your company values while maintaining the same standards as your US-based employees.
Flexibility and growth: As your business evolves, your team can adapt and grow with you, taking on new responsibilities and developing specialized expertise in your operations.

According to Near's State of LatAm Hiring Report, companies that hire in Latin American see a savings of $35,000 to $55,000 per role compared to hiring in the US.

Best Practices for Oil and Gas Accounting Outsourcing

Successful outsourcing of oil and gas accounting requires strategic planning and adherence to best practices to maximize efficiency and effectiveness.

Clearly define roles and responsibilities

Establish clear guidelines outlining the roles and responsibilities of both your company and the outsourcing provider. Knowing what you need even before approaching a potential provider helps you find the best possible match when assessing providers.

This clarity also ensures alignment and accountability throughout the outsourcing process.

Establish effective communication channels

Foster open and transparent communication channels with your outsourcing partner. Set communication channels for your team and your outsourcing partners. Having guidelines on how to use them is also a great way to ensure effective communication between team members.

Regular updates, feedback sessions, and strategic discussions will also help maintain synergy and enable you to address any issues promptly.

Ensure data security and confidentiality

Protect sensitive financial data and comply with industry regulations by implementing robust data security measures. Choose a provider with strict data protection protocols to safeguard your information.

Regularly monitor performance and review results

Monitor key performance indicators (KPIs) and review outcomes regularly to assess the effectiveness of the outsourcing arrangement. Adjust strategies with your service provider as needed to optimize performance and achieve business goals.

Foster collaboration and partnership

Treat your outsourcing provider as a strategic partner rather than just a service provider. Collaborate on continuous improvement initiatives, share insights, and leverage its expertise to drive innovation and operational excellence.

Finding a provider that promises to deliver a collaborative partnership will give you support throughout the entire outsourcing process. Building on this partnership can unlock even more opportunities to scale your business.

Final Thoughts

We get it. You came here looking for outsourcing solutions, and the providers listed above can handle your accounting functions.

But here's what we've learned from working with hundreds of energy companies: the best long-term results come from building your own dedicated accounting team, not outsourcing to a third party.

Think about it this way: your accounting team needs to understand your specific joint ventures, your lease structures, and your production accounting nuances. When you outsource to a firm, you're sharing that expertise across their other clients. When you hire your own team, that knowledge stays with you and grows with your business.

Companies like CyberFortress discovered this firsthand. Instead of outsourcing their accounting functions, they built their own 20-person team with Latin American professionals who became true team members, not external contractors. The result? They cut their month-end closing time by 33% and saved $1.2M annually while maintaining complete control over their financial operations.

The choice is yours: outsource to a provider and share resources, or build your own team that's 100% dedicated to your success.

Book a consultation call with Near to explore how hiring top accountants in LatAm could transform your financial operations while keeping costs under control.